- The Bitcoin Dominance chart hits key supports and bounces, impacting the crypto market.
- Price drops can be seen as buying opportunities, patience comes into play.
- Traders hyper react and confidence enters the negative zone.
The Bitcoin dominance chart reached the base of the current technical structure, producing the upward bounce that we see reflected in red in the market. The big question is whether investors will look for a new scenario out of this bullish structure or if it will open a new outlook of bearish continuity that would trigger the Altcoin segment towards new historical highs.
Market sentiment is overreacting and marks level 49, according to statistics of alternative.me site. The long months of crypto-winter have left their mark on traders, loosing 7 confidence points in 36 hours.
As long as the critical supports are intact, the falls will be buying opportunities for the market.
ETH/BTC Daily Chart
ETH/BTC is currently trading at the price level of 0.02559 and is down 10% from its relative high of 0.0275. Bitcoin proved to be resistant to fear sales of the past few hours and is barely moving away from the $10,000 level.
Looking ahead to the week ahead, we can expect the consolidation movement to drag on for a few days, as moving averages rise rapidly in search of the spot price.
The likely meeting level is around the 0.023 level.
Above the current price, the first resistance level is at 0.0268, then the second at 0.0275 and the third one at 0.029.
Below the current price, the first support level is at 0.025, then the second at 0.023 and the third one at 0.0213.
The MACD on the daily chart is slightly bearish but retains the openness between the lines. The current structure suggests a lateral downward movement with possible violent upward reactions.
The DMI on the daily chart shows that the bulls continue to lose strength from the extreme upward levels reached last week. The bears take this price drop as an opportunity and are climbing sharply.
BTC/USD Daily Chart
BTC/USD is currently trading at the $9803 price level after an attempt to break out of the $10,000 level early in the Asian session.
Above the current price, the first resistance level is at $10,500, then the second at $11,000 and the third one at $13,000.
Below the current price, the first support level is at $9,650, then the second at $9,150 and the third one at $8,900.
The DMI on the daily chart shows the bulls right on top of the bears, with a high risk that the sell-side could take control of the BTC/USD pair and deepen the price declines.
ETH/USD Daily Chart
ETH/USD is down $40 from a high of $290. The failure to break that resistance level sent a message of weakness and active selling that seeks to capitalize on gains from December 2019 lows.
Above the current price, the first resistance level is at $260, then the second at $290 and the third one at $308.
Below the current price, the first support level is at $250, then the second at $237 and the third one at $230.
The MACD on the daily chart shows a bearish cross, but it has not completed the bearish cross. The small opening between the lines leaves little room for an upward rebound.
The DMI on the daily chart shows the bulls are losing strength, but still, hold the lead in the ETH/USD pair. Bears are reacting to the weekend's sales and increasing their trend force, though far from disputing the leadership of the buying side.
XRP/USD Daily Chart
XRP/USD is currently trading at $0.281 and is a member of the Top 3 that has lost the most support levels.
Above the current price, the first resistance level is at $0.29, then the second at $0.30 and the third one at $0.32.
Below the current price, the first support level is at $0.28, then the second at $0.27 and the third one at $0.255.
The MACD on the daily chart shows a bearish cross in progress so that we can expect at least a bearish lateral environment.
The DMI on the daily chart shows bulls with a minimal lead over the bears. At some point, they will have to discuss the leadership, which will possibly bring about an increase in volatility.
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